press release

Chevron Press Release - Chevron Forms Deep Water Alliance

NEW ORLEANS, Dec. 22, 1997 -- Chevron's Gulf of Mexico Deep Water Business Unit has announced that it is forming a Highly Integrated Alliance involving several companies for development of its deep-water offshore leases in the Gulf of Mexico. The companies selected to participate in the alliance include Aker Maritime, Inc.; Brown & Root Energy Services; Han-Padron Associates; and Saipem.

"Deep-water development is a key component of Chevron's future in the Gulf of Mexico," said Andy Hardiman, vice president of the Deep Water Business Unit. "A critical factor in achieving that success will be the superior execution of our development projects."

"We spent a great deal of time reviewing the capabilities of the industry and, after a careful selection process, chose this group of companies to be the anchor suppliers in our Highly Integrated Alliance. When fully operational, this alliance will provide a full range of project services including conceptual studies, engineering, fabrication and heavy lift capability. The addition of other suppliers to the alliance on a project by project basis will round out the project teams."

Chevron's deep-water development program in the Gulf of Mexico aims to add significant new oil and gas reserves over the next 10 to 20 years. Genesis, Chevron's first deep-water project in the gulf, is expected to start producing oil at the end of 1998. Since 1990, Chevron has increased its deep-water lease holdings from 16 to 362 blocks. The company also has two deep-water drilling rigs under long-term contract.

Chevron U.S.A. Production Company is a wholly owned subsidiary of Chevron Corporation.

Updated: December 1997